Written Answer by Ministry of National Development on whether the Ministry can consider providing financial subsidies for HDB flat buyers to rent interim housing in the open market
Oct 4, 2021
Mr Edward Chia Bing Hui: To ask the Minister for National Development whether the Ministry can consider providing financial subsidies for HDB flat buyers to rent interim housing in the open market given the additional construction delays caused by the COVID-19 pandemic as well as the limited supply of flats available under the Parenthood Provisional Housing Scheme.
Answer:
We recognise that delays to the completion of Build-To-Order (BTO) flats have caused inconvenience to flat buyers and affected their plans. HDB is working closely with contractors and relevant government agencies to keep construction work on track to meet the revised timelines, while ensuring that project quality and safety standards are not compromised.
Not all flat buyers require assistance with interim housing, as many are able to find alternative housing arrangements with family members or on the open market. The Parenthood Provisional Housing Scheme (PPHS) provides an additional option for those who need help with accommodation while awaiting the completion of their BTO flats. HDB will be increasing the supply of PPHS flats starting from this year and over the next two years. HDB has also finetuned the PPHS eligibility conditions and allocation process to prioritise families in greater need of subsidised temporary housing.
Given the COVID-19 situation, many other families looking for temporary housing may also be turning to the open market for rental. Providing direct subsidies may induce demand and drive up market rentals. Such a move would be counter-productive, as it makes renting more expensive. As such, HDB currently has no plans to provide direct subsidies for open market rental.
For low-income households with no family support and no other housing option, other than PPHS, HDB will consider offering Interim Rental Housing (IRH) on a case-by-case basis. HDB will also consider waiving the forfeiture and the one-year wait out period for flat buyers who have been affected by these delays and, as a result, choose to cancel their BTO flat booking to buy a resale flat, based on an assessment of the flat buyers’ specific circumstances.